Pig iron prices in Indian market may fall in the next few weeks for an increased supply following higher production, according to SteelMint’s conversation with industry participants.
Indian pig iron prices have increased by around INR 6,000-8,000/MT (USD 90-120) in last 4-5 months amid rising raw material prices and absence of Neelachal Ispat (NINL) and Vedanta Resources.
Currently, steel grade pig iron prices are assessed at around INR 29,500-30,000/MT (USD 435-443) ex-Odisha – East India, which is one of the largest merchant producing regions in India.
Neelachal Ispat Resumes Production
Neelachal Ispat Nigam Ltd (NINL), state owned and India’s largest steel grade merchant pig iron producer has resumed production after a gap of 5-months. Plant was under capital repair maintenance. NINL has reported highest ever hot metal production of 3,000 MT per day against production level of 1,400-1,500 MT per day before maintenance.
Buyers Shun High Pig Iron Offers
According to market participants, buying interest continues to remain low at current offers by pig iron producers. Building up inventories may put pressure on domestic prices.
“There is very thin buying interest at current levels, traders are unwilling to take position on anticipation that prices may correct. Last offers by NINL failed to attract buyers.” said a trader based in eastern India.
Export Realization Much Lower Than Domestic Realization
Pig iron exports from India remain inactive owing to high disparity between domestic and export realizations. Buyers are eyeing price level of USD 365-370/MT FOB India levels, where as domestic prices are not less than USD 430-440/MT on ex-mill basis.
NINL’s 40,000 MT pig iron export tender expired on 25th May, but participants claim that response was not very encouraging.
Notably, India exported around 575,450 MT pig iron in calender year 2017.
Leave a Reply